Bitcoin’s historic rise toward the $100,000 milestone occurred among many significant cryptocurrency redemption stories in a year that further legitimized the industry’s status.
This year’s events have led to the resurgence of many notable struggling cryptocurrency projects, including Ripple Labs, which scored a significant legal victory against US securities regulators, as well as increased interest in retail and the asset tokenization sector. Strong growth forecast.
By 2024, there has been renewed institutional interest in blockchain, with some of the world’s largest institutions, such as BlackRock, launching several cryptocurrency-based products, surpassing all-time highs.
Moreover, President-elect Donald Trump’s victory in the 2024 election has strengthened investors’ preference for risky assets such as cryptocurrencies. The improved environment comes as regulations are expected to become clearer, especially for tokens such as XRP (XRP).
relevant: The Republican Senate majority has signaled more support for a cryptocurrency Congress.
Ripple Labs and the XRP token will emerge victorious in 2024.
Despite more than four years of regulatory battle between Ripple and the Securities and Exchange Commission (SEC), the XRP token has proven its resilience amid a strong community of holders.
XRP and BTC, 1-year chart. Source: Cointelegraph
Last year, the XRP token rose more than 251%, more than double Bitcoin’s (BTC) 117% return, according to Cointelegraph data. According to Cryptobubbles data, XRP is the second best performer among the top 10 cryptocurrencies.
Top 10 cryptocurrencies by market capitalization. Source: Cryptobubble
In addition to the monetary returns of XRP tokens, Ripple Labs has seen “significant redemption volume” over the past year, according to Alvin Kan, chief operating officer of Bitget Wallet.
He told Cointelegraph:
“In 2024, Ripple and XRP will stand out as significant redemption arcs in the cryptocurrency space. After resolving the legal challenges, Ripple has solidified its position in cross-border payments, working with over 300 financial institutions and achieving a market capitalization of over $30 billion.”
Ripple scored a significant legal victory in July 2023 when a federal judge ruled that XRP is not a security when it comes to programmatic sales on the digital asset exchange.
This was a significant victory for Ripple, as the SEC lawsuit forced Ripple to stop offering its XRP tokens on the premise that they were a security and therefore needed further regulation.
However, the SEC also scored a victory of its own when a federal judge ruled that XRP was a security when sold to institutional investors because it met the conditions set out in the Howey test.
The SEC filed a lawsuit against Ripple in December 2020. In August 2024, a judge ruled that the company must pay a $125 million civil penalty. The committee appealed the ruling, and Ripple filed a cross-appeal, resulting in an ongoing civil lawsuit at the time of publication.
On October 16, the SEC filed a form asking the court to review the decisions of Ripple CEO Brad Garlinghouse and co-founder Chris Larsen regarding the sale of Ripple XRP on exchanges and private XRP sales. C filed a civil appeal.
Trump’s upcoming inauguration and SEC Chairman Paul Atkins have reignited investors’ hopes that the SEC may dismiss the legal case against Ripple Labs amid more innovation-friendly cryptocurrency regulations.
relevant: Coinbase legal officer files $1 billion lawsuit over wBTC delisting
Memecoin Resurgence: 1,600% PEPE and 1,400% WIF Rally Attract More Retail Investors
Memecoin has also seen a significant resurgence, becoming one of the best-performing cryptocurrencies this year and creating new cryptocurrency millionaires in the process.
The best cryptocurrency to date. Source: Cryptobubble.
Year to date, the Solana-based Dogwifhat (WIF) meme token is the second-best performer among the top 100 cryptocurrencies, up more than 1,273%. It was followed by PEPE, rising 1,229% to take third place.
PEPE and WIF, 1-year chart. Source: Cointelegraph
On December 14, Cointelegraph reported that Pepe had benefited from the rally, turning a $27 investment into $52 million after holding the coin for 600 days.
According to author and intergovernmental blockchain expert Anndy Lian, 2024 has been a year of change for the entire cryptocurrency industry, but memecoin redemption remains a significant development.
He told Cointelegraph:
“Often dismissed as speculative and frivolous, memecoins have found new relevance in 2024 by integrating humor, culture, and financial innovation. Tokens such as Dogecoin, Shiba Inu, and Neiro gained popularity as Dogecoin influenced US politics through Elon Musk’s appointment to the Department of Government Efficiency (DOGE).”
The arc of salvation behind Memecoin is evidence of a community-driven project, Lian added.
Some cryptocurrency traders see Pepe as this cycle’s Dogecoin (DOGE), which is gaining traction thanks to Musk’s constant social posts, wrote Ryan Lee, senior analyst at Bitget Research.
“Dogecoin may be poised for a breakout as Elon Musk’s continued influence puts DOGE in the spotlight and often triggers price surges. Positive sentiment in the broader cryptocurrency market, and meme coins in particular, provides additional momentum.”
Excerpt from Donald Trump’s DOGE announcement shared by Elon Musk on X. source: Elon Musk
On November 27, Dogecoin sparked further interest by overturning the market capitalization of Porsche after Musk helped create the nascent government efficiency department.
relevant: The Bitcoin Liquidity Index points to a local BTC high of $110,000 by January 2025.
RWA tokenization is expected to grow to $1 trillion by 2030.
The real asset (RWA) tokenization sector has also seen a significant recovery thanks to promises to bring traditional finance on-chain to create more liquidity and accessibility to investment products.
RWA tokenization refers to financial and other tangible assets issued on an immutable blockchain ledger, increasing investor accessibility and trading opportunities for these assets.
The launch of BlackRock’s Institutional Digital Liquidity Fund (BUIDL) was a pivotal moment for the RWA tokenization sector, according to Brickken co-founder and CEO Edwin Mata. He told Cointelegraph:
“BlackRock’s launch of BUIDL on Ethereum was a defining moment, demonstrating how blockchain can deliver real, tangible value to the financial world. This was more than a technical experiment. We have restored credibility and trust in the blockchain ecosystem.”
BlackRock’s Tokenized Treasury fund surpassed $500 million in market capitalization in July 2024, becoming the first fund to reach this milestone.
BlackRock’s BUIDL surpassed the Franklin OnChain US Government Money Fund (BENJI) as the world’s largest tokenized treasury fund at the end of April, less than six weeks after launching on March 15. BUIDL has maintained its top spot ever since.
BUIDL’s price is pegged 1:1 to the US dollar, and daily dividends are paid directly to investors every month through a partnership with Securitize, a real-world asset tokenization platform.
Tokenized funds bring more transparency, liquidity and accessibility to already trusted financial products, Mata added.
“The cryptocurrency industry has been criticized for its speculative nature and lack of integration with traditional financial systems. As the world’s largest asset manager, BlackRock has proven that blockchain can enhance traditional finance, not replace it.”
In other notable developments in the RWA sector, Tezos launched the world’s first uranium marketplace on a blockchain, giving retail investors access to tokenized uranium for the first time in history.
Additionally, following the launch of Nayms, a cryptocurrency-native (re)insurance marketplace that leverages RWA tokenization to provide tokenized investors with access to insurance risk, RWA is opening up new investor opportunities in the $700 billion reinsurance sector.
relevant: BlackRock’s BUIDL transitions to multichain.
According to forecasts from some of the largest financial institutions and business consulting firms compiled in a Tren Finance research report, the RWA sector could grow more than 50 times by 2030.
Most companies expect the market size of the RWA sector to be between $4 trillion and $30 trillion.
RWA Tokenization, Market Size Forecast by 2030. Source: Tren Finance
If the sector achieves mid-year projections of around $10 trillion, it would have grown more than 54 times its current value.
2024 marked a major resurgence for the cryptocurrency industry in terms of valuation and mainstream trust. Ripple’s legal victory and growing interest in memecoin and RWA demonstrate the industry’s growing legitimacy to retail participants and regulators around the world.
magazine: Bitcoin Dominance Will Fall in 2025: Benjamin Cowen, X Hall of Flame